Sunday, June 5, 2016

Western media should rethink its distorted portrayal of China’s rise

Western journalists who regard China’s
motives with suspicion and cynicism are cherry-picking facts based on a biased
view, and the misinformation they produce as a result is unhelpful

Many in the West are alarmed
by China’s rise as an economic power in just 30 years to become the world’s
second-largest economy after the United States. Scores of Western writers have
penned denigrating articles on China as they believe that a non-democratic
country must be regarded with suspicion and fear. Although the “domino theory”
of multiple countries succumbing to communism has fallen by the wayside, such
writers continue to perpetuate a climate of anxiety and misunderstanding about
the emergence of China.

The latest to do so
was Gideon Rachman in the Financial Times last month. He claimed that
Xi Jinping ( 習近平) is taking his country in “radical and risky new
directions” by abandoning the formula that has driven China’s rise.
Specifically, he said Xi has significantly changed the three ingredients for
success adopted by Deng Xiaoping ( 鄧小平 ) – in economics, politics and international affairs – and seeks to follow
his own experiment for national rejuvenation. Xi, he said, has created a
perilous path for the economy, fostered severe tensions within China, promoted
a cult of personality for himself in the likeness of Mao Zedong (毛澤東), and caused confrontation with the West in the international arena.

Rachman is mistaken. On the
economy, while it is true that China has had to make changes to its fiscal
policies, Xi is dealing with the harsh realities of the global economic
environment. He realises China cannot rely on export-led growth indefinitely,
given the steady rise of costs and wages in China, and the fact that other
countries can do things cheaper.

The move to a domestic
consumption model, though perilous, is the consensus solution offered by most
Western economists. Xi has little choice but to follow a market-driven economy,
as the alternative is worse – the continuing decline in exports could lead to
disastrous high unemployment and social unrest. To continue to rely on
export-led growth would mean China having to devalue its currency, which would
lead to a trade war with other exporting countries and trigger China-bashing by
the US Congress (and perhaps even more strident measures by Donald Trump,
should he become the next US president).

On the political front, many
Western journalists claim Xi is building a cult of personality and has made
himself into the most powerful Chinese leader since Mao. Xi has, the likes of
Rachman say, used this power to launch his crackdown on corruption, resulting
in thousands of convictions, causing widespread internal disquiet. Instead of
praising Xi’s purge, his actions are disparagingly portrayed as terrifying much
of China’s business and political elite.

The rampant corruption in
China, where every business transaction has to be greased to close a deal, has
to be one of the greatest weaknesses in China’s economy. Far worse, this aspect
is symptomatic of a large chunk of society, where even promotions in the armed
forces depend on payment to a higher-up authority. This pernicious syndrome
makes for an unethical society and disrupts economic efficiency, given the
large number of “middlemen” taking a slice of each transaction.

Xi should be praised for his courage and far-sightedness,
not denigrated as a power-grabbing cultist opportunist

Certainly, it is highly
risky for Xi to seek to reform a societal norm, where millions of officials are
used to enjoying the easy spoils of corruption. So he needs to remain on guard
against enemies lurking everywhere and has built himself up as a strong
paramount ruler as a defensive measure. In this way, his authority is respected
and the much-needed reforms can succeed. Xi should be praised for his courage
and far-sightedness in seeking to rid the country of such pervasive
malpractice, not denigrated as a power-grabbing cultist opportunist. Other
societies in Asia, such as Singapore, Hong Kong and Taiwan, have succeeded in
largely stamping out corruption and, in doing so, have joined the higher
echelons of enlightened jurisdictions. For China to take its place among the
world elite, Xi must succeed in this endeavour.

On the international front,
some in the West contend that Xi’s foreign policies have become so
nationalistic as to challenge US dominance, thereby risking confrontations.
This is particularly with regard to Beijing’s tough assertions of maritime
claims, epitomised by island building in the South China Sea and sparring with
Japan in the East China Sea.

However, what has been
forgotten is that the current feud with Japan was provoked by Tokyo’s
unilateral nationalisation in 2012 of the Diaoyu/Senkaku Islands. After the
second world war, the US security treaty gave Japan administrative rights over
the Diaoyus/Senkakus, not ownership rights. This ambiguity was peaceably
tolerated by both sides for many years until Japan’s unilateral actions.

Much misinformation has arisen as a result of Western
journalists’ negative and one-sided analyses of China’s motives and ambitions

In the South China Sea,
other nations such as Vietnam have reclaimed reefs and built bases; China was
late in staking its own claims. China believes that, based on historical
records, its claims are legitimate. To stand aside while others construct islands
and bases would be to surrender its sovereignty.

Apart from maintaining
ownership rights, there is no reason for China to risk confrontation with the
US over the Asian-Pacific region. Yet, America felt compelled to accuse China
of bullying its neighbours without considering these historical records or
acknowledging that China was only belatedly countering others’ claims. More
worrisome is that Washington has encouraged Japan to deploy its armed forces
overseas and sanctioned the sale of weapons to Vietnam. In response, China has
always maintained it wants to negotiate bilaterally with each of the contesting
countries in the South China Sea.

Much misinformation has
arisen as a result of Western journalists’ negative and one-sided analyses of
China’s motives and ambitions. In the grand scheme of things, China wishes to
continue to grow its economy and build a better future for its citizens. It
wants to gain its rightful place in the world as a responsible, peaceable and
advanced nation. Towards this end, China wishes to act cooperatively with
others to increase trade and advance its economic interests. At the same time,
it does not want to be harassed and bullied into conforming to the Western way
of governance.

Many hurdles remain for
China in restructuring its economy and it is learning to create a market
economy on the fly. Western writers can do everyone a favour by analysing China
in a balanced way, rather than continuing to regard China’s motives with
suspicion and cynicism, just because its political system is not the preferred
“democratic” model used by the West.

L. K. Cheah, CPA (chartered professional
accountant), is a Singaporean residing in Canada